I was just wondering how DL's new pricing scheme will affect its SkyTeam partners, namely CO and NW. Under the codeshare agreement, will DL be able to sell seats on CO and NW flights under the new pricing plan? How will this work?

Interesting question. Delta has a history of buying market share by undercutting its partners. Example: Delta regularly undercuts SA on their SA operated codeshares to JNB/CPT. Even within SkyTeam, Delta often undercuts their skyteam partner AF by offering rates lower than AF is willing to offer.

SA is not a partner of Delta's. DL simply get's a commission for selling SA's inventory.

And you don't know what your talking about with AF since it is a revenue sharing agreement. It all goes into the same pot and is divided out later. I find that AF often has the lower fares compared to Delta, but as I say it all goes into the same pot.

Padcrasher,SA is in a codeshare partnership with DL. DL offers flights under it's own codeshare flight numbers, and it aggressively markets that pricing, consistently undercutting SA's own tariff structure.

I was not aware that AF and DL are now sharing revenue, if that is in fact the case. If that is the case, I don't see why DL would continually offer lower pricing to West Africa when AF expressely wants to keep pricing as high as possible to their biggest money making destination.

DL does not undercut SA pricing. You cannot buy a seat on an SA codeshare for less than what SA offers it for.

Now what you are talking about may be using Delta to Europe and then another carrier to South Africa? So what? I'm sure the SA mgt is adult enough to manage their own pricing and if someone can go thru Europe cheaper good for them.

Why, Delta plays around the edges... Delta files different seasonality than SA, always staying within the margins so as not to ever have the situation reverse itself where SA can take advantage of a reciprocal seasonal difference.

As I said if you want to go directly to South Africa on SA with Delta the price will be the same or more. SA most rightly feels they can charge more for more direct service. All major airlines operating accross the Atlantic publish the same through fares connecting via European hubs. Delta has for the most part the same fares.

You are implying that DL is undercutting their partner SA, which is silly. DL is siimply offering the same fares that the rest of the airlines charge.

Padcrasher,
People are allowed to ask legitimate questions. You've had attitude from your very first posting on this thread. If you're having a bad hair day, I'm sorry, but don't take it out on the rest of us.

Padcrasher,
I stand by my statement. I've observed it over 25 years in this business. SA)">DL coerced SA into a straight-rate prorate agreement instead of per-sector nets, even though the carriers were supossedly "marketing" partners on routes to South Africa. SA was so desperate to have a SA)">DL as partner, they agreed to the straight-rate prorate, even though they take a beating on every seat sold with SA)">DL connecting traffic. Don't believe it...check it out with tariffs.

I've been working in this industry long enough to see who plays nice and who doesn't. Although I truly sympathize with the employees at SA)">DL, I find it very difficult to feel sorry for the carrier as a company. They reap what they sow.

No you've got the wrong idea about SA. They are not interested in alliances or discounting their product. They have little competition in their markets and do not need get into more complex forms of code sharing. They are a low tech airline that is happy to charge a premium for the markets they control. Think of the SA as the Mecedes Benz dealer. (Here is the car. Here is the price.) They would not allow Delta more access to their inventory even though Delta pushed for that. Delta cannot coerce SA as Delta has no natural leverage to hold over their heads. I have a background in marketing and I can tell you you are lucky if you can get a SA agent to return your e-mails. I wouldn't feel sorry for South African.

Padcrasher,
Question: Do you work as an airline analyst, or have any experience in airline pricing...just curious. I'd appreciate knowing before I ask my questions, because they pretty complex (I have been an airline sales and pricing analyst at UA, and I am very interested about some of your comments, but I want to make sure that I ask the questions in the right way).
Let me know...thanks!
baw716